Novatex may add Hospira line/ German company could locate in Ashland Business Park if it receives ta

Darcie Loreno Published: August 25, 2006 12:00 AM

By DARCIE LORENOT-G Staff WriterWhile it hasnt yet given the city a firm commitment, a German company this week applied for tax incentives for a plant in Ashland Business Park. If its plans work out, Novatex GmbH would take over a baby bottle nipple contract and production from Hospira, retain at least 25 Hospira jobs and base a U.S. headquarters in the park after beating out competition in China and Brazil. It truly is not a firm project, emphasized Evan Scurti, Ashland Area Council for Economic Development director at a Community Improvement Corporation meeting Thursday, adding the companys plans depend on state help.According to Scurti, Novatex makes products similar to Hospiras bottle nipples, which are supplied to Ross Products Division, an Abbott subsidiary. When Hospira announced earlier this year plans to sell product lines, discontinue products and close its Ashland facility by fall 2007, Ross contacted Novatex, which provides it products from Germany. Novatex project manager Chris Schmid said with the project, Novatex would purchase those assets from Hospira to continue the nipple production in Ashland. Ross would be its first customer, he said.Ross, Scurti said, mainly produces baby formula, but for years Hospira supplied it with bottle nipples. Ross has contracts with many hospitals that give away the nipples to new mothers as part of free kits. Novatex is looking at 10 to 12 acres in the park to the west side of a new road that runs north and south. The building would face Faultless Drive, and there would be room to grow to up to 120,000 square feet. Novatex would work with Hospira to retain 25 current employees. That number could grow to 50 in the next two years. Scurti said the positions would pay $15 per hour.Novatex originally hoped to find a building in the community, Scurti said, but when it couldnt find what it needed, local contractors said they would get something up and running in time. If plans work out, Novatex hopes to begin production by next June. Its a great story, Scurti said. But, like I said, its not a firm go. Its contingent on state help.Scurti said he was contacted about the plans about two months ago by Novatex. He got the company in touch with Schmid, chairman for the Wayne Economic Development Council and originally from Germany himself.Schmid said because Novatex is competing with Brazil and China, we really have to scrape the bottom in making sure we dont leave anything on the table. He said the plant would be Novatexs U.S. headquarters and first operation in North America, and many other opportunities could open up afterward. Novatex makes similar products for customers in 90 countries including in Europe, the Middle East, Japan and China. He hopes to release more details by September. Everything looks good, but you never know until you know for sure, he said.Scurti said plans also are moving along with developer Jerry Baker, who owns 21 acres of the park located across the street from the main acreage. There are plans for a warehousing facility and possibly a gas station in an out parcel. n Darcie Loreno can be reached at 419-281-0581 ext. 237 or at dloreno@times-gazette.com.